HighPoint Files for Bankruptcy, Set to Be Bought by Bonanza
(Bloomberg) -- HighPoint Resources Corp. filed for bankruptcy, setting in train a process that will result in the Denver-based shale oil producer being acquired by Bonanza Creek Energy Inc.
The driller filed a Chapter 11 petition in U.S. Bankruptcy Court in Delaware, indicating its estimated liabilities to be up to $1 billion.
Sunday’s filing comes two days after shareholders of HighPoint and Bonanza approved plans for the companies to merge as part of a prepackaged debt restructuring agreement. Bonanza’s stock tumbled 12% last week, paring its gains this year to 81%. A phone call requesting comment on Sunday was unanswered.
Bonanza Creek-HighPoint Merger Could See HighPoint in Bankruptcy
HighPoint operates in the Denver-Julesburg Basin of Colorado and Wyoming, a shale play that has seen more than three-quarters of its drilling rigs idled, according to Baker Hughes Co.
Deutsche Bank AG was listed as HighPoint’s largest creditor with claims unsecured by collateral of $641 million.
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